How Much Lower For TLT?
I think this pullback in Treasuries is strongly confirming of our wave 2 lower within the larger wave (3) up after the awkward leading diagonal. Now the question becomes: Is this all of 2 or only the a of a wider/deeper 2 as shown on the TLT chart?
We know that normally leading diagonals are followed by wider and/or deeper retraces than "normal" wave 2's, and that they then lead to stronger third waves, but our setup here is also "nested."
This means that this LD for a wave 1 is inside a larger (3) that began off the June lows.